Entrepreneurship Fund Journey

NOV 2019 Jan -Feb 2020 Mar-m a y 2020 no v -mar 2020 APR-DEC 2021 march 2022 Trip to Silicon Valley for a high-level delegation. The idea of a Fund for the start-up ecosystem was born and discussed with SV entities during the visit. It was agreed the Fund should be private sector led. A National Advisory Council was formed with the Fund and Start-Up Act as some of the initiatives tracked. The Fund is positioned as an instrument driven by the private sector – with the backing of the public sector. Initial structuring, formulating of strategy, drafting of pitchbook and shaping of road map for the Fund. Consultations with key stakeholders. Performed a holistic mapping of the ecosystem, preliminary projected pipeline and finalization of the Fund structure. Fund size is set at $50M (Equity) + $10M (Grant). Term sheet/prospectus are completed. Investor packages are shared with investors. Enkopa Fund Legal establishment - formation of limited partnership (LP)/general partnership (GP). Investor negotiation. Investor due-diligence and close of 1st round of fundraising.

Entrepreneurship Fund Overview

Why is the EF needed

After a decade-long steady growth, with an enduring backdrop of robust macro-economic and policy tailwinds, the tech ecosystem in Ethiopia is ready for catalytic funding. However, despite the current abundance of liquidity supporting early-stage entrepreneurs both through financial and technical resources, our research underscores a lack of support structure (financial and technical) post the incubation phase of start-ups in Ethiopia. Entrepreneurs are left to fall off a cliff post-incubation program.

EF Mission

The Entrepreneurship Fund wants to prevail post-incubation programs and beyond, by providing a continuum of support through both, a blended finance approach, where risk (equity) capital would be predominant along with technical assistance;

Identify and harvest the most promising innovative companies through a clear and defined framework which assumes the regions challenges and recognises those that will thrive;

A fund calibrated both from a structural and investment strategy perspective to the Ethiopian and regional start-up and digital high-growth companies ecosystem needs;

An experienced multi-disciplinary team with decades of investment experience both internationally and in the region.

InvestmentCycle for Companies

Entrepreneurship Fund will primarily focus on seed and the middle section – in order to provide liquidity and a support structure to the missing middle with a dedicated aim of creating value. This in turn will allow larger players to provide exit opportunities for portfolio companies of the Entrepreneurship Fund.

Entrepreneurship FundObjectives

Fund

Providing both risk capital and technical assistance to selected innovative companies primarily in Ethiopia, and East Africa;

A clear focus on value creation coupled with sustainable social impact to the region;

Generate attractive risk adjusted returns;

Create and enhance a secondary market for VCs by providing alternatives for exit.

Nation

Address key Sustainable Development Goals: job creation, financial inclusion, and gender promotion;

Invest in market creating innovations and ventures with potential for nation building through an integrated pull of resources and support;

Ensure sustainability in the flow of capital to innovative ecosystems;

Encourage more funds (Venture Capital, Private Equity, Corporate Venture Capital) to focus on opportunities in Ethiopia;

Encourage future funds to raise capital in local currency, or a hybrid of local and hard currency;

Reduce dependency on grant funding by clearly demonstrating value creation to attract risk capital to Ethiopia, and by extension, to the region.

Disclosure

Nothing presented herein is intended to constitute investment advice, and under no circumstances should any information provided herein be used or considered as an offer to sell or a solicitation of an offer to buy an interest in any investment fund. Information provided reflects views as of a particular time. Such views are subject to change at any point and any organization concerned shall not be obligated to provide notice of any change. While all reasonable efforts were made to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of the information presented herein.